NLC Announces Nationwide Boycott Over Telecom Hike

The Nigeria Labour Congress (NLC), an umbrella group for trade unions, has announced that Nigerians are planning a statewide boycott of telecom services in protest of the Nigerian Communications Commission’s (NCC) recent approval of a 50% increase in phone costs.

Following carriers’ demands for cost-reflective charges amid challenging economic conditions, the NCC approved a 50% increase in telephone tariffs on Monday.

This hike, which fell short of the 100 percent increase that telcos requested, caused the average cost of calls to go from N11 to N16.5 per minute, the cost of 1GB of data to go from N287.5/GB to N431.25, and the price of SMS to go from N4 to N6.

Reject This Tariff pic.twitter.com/78UNE4V2ob

— Nigeria Labour Congress HQ (@NLCHeadquarters) January 23, 2025

“The adjustment, capped at a maximum of 50 percent of current tariffs, though lower than the over 100 percent requested by some network operators, was arrived at taking into account ongoing industry reforms that will positively influence sustainability,” the commission said.

In a statement issued on Wednesday, NLC president Joe Ajaero denounced the tariff increase, calling it an unfair burden on those who are already facing financial difficulties.

He voiced concerns about the hike’s timing, pointing out that it comes while inflation and purchasing power are on the rise.

He said, “This decision, coming at a time when Nigerian workers and the masses are grappling with unprecedented economic hardship, is a clear assault on their welfare and an abandonment of the people to corporate fat cats.

“Telecommunication services are essential for daily communication, work, and access to information. Yet, an average Nigerian worker already spends approximately 10 percent of their wages on telecom charges.

“For a worker earning the current minimum wage of N70,000, this means an increase from N7,000 to a staggering N10,500 per month, or 15 percent of his salary—an unsustainable cost.

“NLC is not opposed to a tariff review but disagrees with the approved rate of increase. We therefore call on the government, the NCC, and the National Assembly to stop the implementation of this ill-advised hike to allow a reasonable conversation around it.

“If the dialogue agrees on the need for the hike, then we can all seek a more humane increase and definitely not this 50 percent hike,” he stated.

The NCC added that rate adjustments were made to close the gap between current tariffs and growing operating costs without compromising service delivery to customers.

Telcos had complained that a 300 percent increase in operational costs was forcing them to shut down.

The CEO of MTN Nigeria, Karl Toriola, stated in 2024 that the firm will shut down if price rises are not enacted.

“These adjustments will support the ability of operators to continue investing in infrastructure and innovation, ultimately benefiting consumers through improved services and connectivity, including better network quality, enhanced customer service, and greater coverage,” the NCC stated.

“Issues such as network congestion, dropped calls, inconsistent internet speeds, unusual data depletion, and poor customer service have remained prevalent concerns. It is, therefore, crucial that tariff adjustments directly translate into demonstrable and tangible service enhancements for consumers,” it stated.

Following the rate rise, telcos have been given a duty by the Federal Competition and Consumer Protection Commission (FCCPC) to enhance the quality of their services.

It stated in a statement on Wednesday that customers have shown a need for quantifiable enhancements in service quality.

BUSINESS DAY/Chidimma Gold